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The Baseline
08 Mar 2024
Which are the best and worst months for Indian stocks? | Screener: stocks outperforming their sectors
By Tejas MD

The Nifty 50 has been on a dizzying ride. Last week saw yet another record high for the index, and it has hit new all-time highs over the past three weeks.

The Nifty Smallcap 100 on the other hand, has declined for four consecutive weeks. Overall, the Nifty 50 has outperformed both small and mid-cap indices over the past month. This outperformance comes even as the regulator SEBI raised concerns about ‘froth’ building up in small and mid-cap stocks.

In response, the Association of Mutual Funds in India (AMFI) swung into action and asked MFs to implement safeguards to protect investors in mid and small-cap funds. This move could impact future fund inflows, and favour large-cap investments going forward. 

Is the Nifty 50 more likely to move up or down in the coming months? One way to figure out the possible direction, is to look at the historical price performance of the Nifty 50 and its sectoral indices. This helps identify the months and quarters usually preferred by investors.

In this week's Analyticks,

  • A dive into share price history: Best and worst performing months and quarters for Nifty 50 and its sectoral indices
  • Screener:Stocks outperforming their sectors with lower current PE ratios

Finding patterns in chaos: Best/worst performing month and quarter for Indian stocks

While it is hard to ‘time’ the market for gains, we can find patterns in how stock markets have performed historically. Trendlyne’s newly launched feature, ‘Share Price History’, helps analyse the daily, monthly and quarterly performance of stocks and indices. 

An analysis of over 18 years of data (2006 to Feb 2024) for the Nifty 50 and Nifty sector indices, reveals interesting trends. April is the best month for most indices with the highest average monthly gains. On the other hand, January and February have historically seen the highest monthly average losses. 

On average, most of the indices closed in the green in 13 out of 18 years in April. Nifty Auto closed higher in 16 of those 18 Aprils.

While February is usually the Nifty 50's worst-performing month, 2024 broke this pattern, as the benchmark index rose 1.2% in February. 

 April tends to be the best month for stocks, and February the worst

What drives these patterns? Why is April often the best-performing month, while February lags behind? To understand this, we explore the quarterly performance of these indices. 

The first quarter (Jan-Mar) is usually the worst-performing, as investors typically sell underperforming assets for tax-loss harvesting, to reduce capital gains taxes owed from selling profitable investments. So It’s not surprising that January and February are the weaker months of a financial year.

Stocks usually record negative returns in Q1 (Jan to Mar) 

But what makes April the best month for stocks? There may be a couple of reasons. First, after a typically weak March quarter, the market is primed for a rebound. Second, the previous financial year ends in March, leaving people with more disposable income to invest again in the new financial year (thanks to bonuses, lesser tax deductions, etc), pushing stock prices higher. 

PSU bank, oil & gas, realty, and auto sectors shine in the past quarter

As FY24 draws to a close, we look at the top four sectoral indices that have risen the most in the past quarter. 

The standout indices for the quarter are Nifty PSU Bank, Nifty Oil and Gas, Nifty Realty and Nifty Auto. Each of these recorded gains not just in the past month, but also over the last quarter, six months, and year. 

Nifty PSU Bank rises the most in the past quarter, followed by Nifty Oil & Gas

Improving asset quality drives PSU banks higher, premiumization boosts auto sector

PSU stocks have been in the news lately with their stellar performance over the past year. The Nifty PSU Bank is the top-performing sectoral Nifty index, with a quarterly rise of 38.7%. This surge is partly from public sector banks posting strong Q3FY24 results on the back of higher interest income, lower credit costs, and improved asset quality. The top four performers in this index include Indian Overseas Bank, Punjab & Sind Bank, Punjab National Bank and UCO Bank.

Nifty Oil & Gas comes next, rising by 38% over the quarter. The aftermath of the Russia-Ukraine conflict in February 2022 led to an increase in gross refining margins (GRMs) to $10.7/barrel, significantly above the long-term average of $5/barrel, as India started to import cheaper Russian crude in large amounts. The top four performers in this index include Oil India, Indian Oil Corp, Castrol India, and Hindustan Petroleum Corp.  


Oil India surges in the past quarter due to rising margin

The realty sector posted an average net profit growth of 201.7% YoY in Q3FY24, with a 21.4% YoY improvement in revenue amid strong customer demand. The top four performers of Nifty Realty include Swan Energy, Sobha, DLF and Godrej Properties. 

Nifty Auto rose 19.7% in the past quarter, also helped by strong Q3FY24 results. The sharp rise in net profit was driven by higher average selling prices, through product premiumization and lower raw material costs. The top four performers in this index include Tata Motors, Bajaj Auto, Bosch and MRF. 

When long-term performance is looked at, Bajaj Finance (+4,089%), Bajaj Finserv (+2,133.1%), Titan Company (+1,443.3%) and Adani Enterprises (+1,208.7%) come out on top in the Nifty 50. 

Note that as always, historical data provides insight into past performance, but it doesn’t guarantee future returns. 

Screener: Stocks outperforming their sectors with lower current PE ratios

Oil India, Swan Energy lead sector outperformance over the quarter

In this week’s screener, we look at stocks from the five best-performing sectoral Nifty indices (PSU Bank, Oil & Gas, Realty, Auto and Metal) over the past quarter. These stocks have not only outperformed their sectors over the past quarter and year but also have a TTM PE ratio lower than their sector averages.

The dominant sectors in the screener are oil & gas, banking & finance and auto & auto components. Major stocks featured are Oil India, Swan Energy, Indian Oil Corp, Punjab National Bank, Hindustan Petroleum Corp, Bharat Petroleum Corp, Canara Bank and Oil & Natural Gas Corp.

Oil India leads the pack with a 91% surge over the past quarter, outperforming the oil & gas sector by 59.5 percentage points during the same period. Its PE TTM stands at 11.5, which is lower than the sector’s PE of 22.1. This indicates that the stock is undervalued relative to its peers. The company’s revenue and net profit also increased by 21.8% YoY and 2.7% YoY respectively during Q3FY24.

Swan Energy follows with a 74.4% increase in its stock price over the past three months, outperforming the realty sector by 41.9 percentage points. Its PE TTM is 56.2, lower than its sectors’ PE of 69.9. The company’s revenue and net profit improved 16.1X YoY and 6.8X YoY respectively in Q3FY24. 

You can find more popular screeners here.

 
Trendlyne Marketwatch US
Trendlyne Marketwatch US
08 Mar 2024

Markets closed down today . Dow Jones was trading at 38771.21 (-6.4, 0.0%) , S&P 500 was trading at 5153.85 (-0.5, 0.0%) while the broader US Tech Composite was trading at 16270.69 (4.5, 0.0%)

Riding High:

Largecap and midcap gainers today include Kidpik Corp (3.42, 800%), Lytus Technologies Holdings PTV Ltd (8.61, 272.7%) and Immuron Limited - ADR (3.95, 139.4%).

Downers:

Largecap and midcap losers today include Churchill Capital Corp VI - Ordinary Shares - Class A (0, -100%), Thunder Bridge Capital Partners III Inc - Ordinary Shares - Class A (0, -100%) and Khosla Ventures Acquisition Co - Ordinary Shares - Class A (0, -100%).

IXIX-CFD: highs, lows and moving averages

79 stocks outperformed, hitting 52 week highs, Stocks touching their year highs included - Gartner, Inc. (470.79, 0.4%), Airbnb Inc - Ordinary Shares - Class A (164.32, 0.3%), Dover Corp. (170.97, 0.0%) and Progressive Corp. (196.05, 0.0%).

19 stocks climbed above their 200 day SMA including Freeport-McMoRan Inc (39.88, 4.5%) and Enphase Energy Inc (130.45, 4.1%).

7 stocks slipped below their 200 SMA including Kraft Heinz Co (34.51, -2.4%) and Lamb Weston Holdings Inc (100.04, -2.3%).

129 stocks are currently overbought in RSI including Freeport-McMoRan Inc (39.88, 4.5%), Enphase Energy Inc (130.45, 4.1%) and Skyworks Solutions, Inc. (107.77, 3.1%).

122 stocks are currently oversold in RSI including Kraft Heinz Co (34.51, -2.4%) and Lamb Weston Holdings Inc (100.04, -2.3%).

 
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The Baseline
07 Mar 2024
By Satyam Kumar

Gone are the days when data strategies were useful mainly to institutional investors, leaving retail investors to follow in their footsteps. Thanks to financial tools like Trendlyne’sbacktesting feature, retail investors now have the same access to data, enabling them to develop investing strategies that have proven to outperform the market in the past.

Screeners help investors identify stocks that excel across multiple metrics. The Trendlyne momentum score, for example, looks at several technical parameters like simple and exponential moving averages, the relative strength index, the average true range, etc across different time frames to identify highly bullish stocks. This scoring system allows investors to shortlist stocks for swing trading. 

In this edition of the Chart of the Week, we analyse one momentum screener: ‘Stocks with Highest Trendlyne Momentum Scores and High Volumes’’. This screener searches through the NSE & BSE-listed stocks to identify those with a market cap of Rs 500 crore and above that exhibit positive momentum scores. It is optimised to highlight the top 20 stocks with the highest momentum scores. 

The screener backtest, covering the period from January 1, 2022, to March 2, 2024, evaluates the weekly performance of this strategy. The screener has given a cumulative return of 135.8% over two years and two months when stocks are changed weekly. In contrast, the Nifty 500’s cumulative return stands at 37.1%.

The heatmap presents a period analysis, showcasing the strategy's weekly returns from Q1CY22 to Q2CY24. The data reveals that this approach delivered positive returns in 73 out of 113 weeks. 

The strategy had its maximum drawdown of 24.8% from Week 2 of Q1CY22 to Week 11 of Q2CY22. The term ‘maximum drawdown’ represents the biggest observed loss from a portfolio’s peak to its lowest point before a new peak is attained. 

This strategy is automated and does not have a stop loss set. So the drawdowns here show the maximum loss potential under this approach. Introducing a stop loss can reduce periods of negative returns and lower the maximum drawdown.

Currently, the screener features stocks such as Waaree Technologies,Anand Rathi Wealth,Tourism Finance Corporation of India,Paisalo Digital, and more.

In the course of the backtest,Gensol Engineering gave the highest returns of 169.1%. 

Renewable stocks lead in highest returns

Gensol Engineering tops momentum screener performance over two years

Let’s now explore the stocks that have achieved the highest returns over the past two years, as identified by the High Momentum screener’s backtest. Gensol Engineering was part of the screener from June 24, 2022, to September 9, 2022, delivering a return of 200%.

Meanwhile, 63 Moons Technologies entered the screener on December 10, 2021, and exited on January 7, 2022. During this period, the company gave a return of 63%. 

Industrial machinery company, Lloyds Engineering Works, remained in the screener for two weeks, from December 24, 2021, to January 7, 2022. During this period, the company gave 60% returns.

Waaree Renewable Technologies, an electric utilities company, was in the screener from January 20, 2024, to February 2, 2024. During this period, its stock price rose by 48%. The company received two orders worth Rs 991 crore and Rs 1,401 crore in February.

Finally, Adani Power was active in the screener for more than a month, delivering returns of 44%. The stock entered the screener on April 1, 2022, and exited on May 6, 2022.

Waaree Technologies and Anand Rathi Wealth post 400%+ returns in the past year

Waaree Technologies leads in one-year gain among active stocks

Let’s now focus on the yearly and quarterly price change % of stocks currently active in the screener. Waaree Technologies' stock price rose by 706% in the past year and 237% in the past quarter. Since its inclusion in the screener on February 9, 2024, the firm has yielded a return of 38.1%.

The capital markets company, Anand Rathi Wealth, reported a 400% rise in its stock price over the past year and a 47% increase in the past quarter. Meanwhile, non-banking financial company Paisalo Digital also rose by 209% in the past year and 93% in the past quarter. It has been active in the screener for the past two weeks as well and has provided 22% returns in this period.

Mangalore Refinery and Petrochemicals surged by 370% in the past year and 92% in the past quarter. In Q3FY24, it posted a net profit of Rs 301.1 crore, compared to a loss of Rs 195 crore in the same period last year.

Lastly, defence company NIBE’s share price rose by 329% in the past year and 126% in the past quarter, following a memorandum of understanding with Munition India to manufacture and supply hardware for ammunition exports.

In conclusion, this screening strategy focused on high momentum has identified stocks that can potentially deliver quick returns, as suggested by the maximum upside of 169%. It also consistently held an average stock count of 19.4, implying diversified investment. 

It’s important to keep in mind that these are automated strategies. Investors should do their own portfolio reviews and make adjustments based on the entries and exits of stocks. And as always, past returns don't guarantee future outperformance.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
07 Mar 2024
Market closes flat, Ahluwalia Contracts bags three orders worth Rs 339 crore
By Trendlyne Analysis

Nifty 50 closed at 22,493.55 (19.5, 0.1%), BSE Sensex closed at 74,119.39 (33.4, 0.1%) while the broader Nifty 500 closed at 20,434.80 (55.3, 0.3%). Of the 2,067 stocks traded today, 1,242 showed gains, and 795 showed losses.

Indian indices closed flat after switching between losses and gains throughout the day. The Indian volatility index, Nifty VIX, fell 4.8% and closed at 13.6 points. Tata Motors closed higher after it increased the prices of all its commercial vehicles by 2%, effective April 1. 

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing flat. Nifty Media and Nifty Metal closed higher than their Wednesday close.  According to Trendlyne’s sector dashboard, Hardware Technology & Equipment emerged as the top-performing sector of the day, with a rise of 3.5%.

Major European indices traded mixed, in line with the Asian indices. US index futures traded flat, indicating a cautious start to the trading session. Brent crude oil futures trade in the red after closing 1.1% higher on a volatile day on Wednesday.

  • Relative strength index (RSI) indicates that stocks like Tata Investment Corp, Godfrey Phillips India, Tata Chemicals and Tata Motors are in the overbought zone.

  • Housing and Urban Development Corp rises sharply as it signs a memorandum of understanding (MoU) with Maharashtra State Electricity Distribution to provide credit up to Rs 5,000 crore. The credit is for a feeder-level solarisation scheme under the PM-KUSUM Scheme.

  • Tata Motors is rising as it increases the prices of all its commercial vehicles by 2%, effective April 1. The company says that this hike is to offset the residual impacts of past inflation, and it will be applied across all models and variations.

  • Gopal Snacks' Rs 650 lakh IPO gets bids for 1.4X the available 1.2 crore shares on offer on the second day of bidding. The retail investor quota gets bids for 2X the available 59.4 lakh shares on offer.

  • J G Chemicals' Rs 251.2 crore IPO gets bids for 27.8X the available 81.7 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 17.4X the available 41.2 lakh shares on offer.

  • Ahluwalia Contracts bags three orders worth Rs 339 crore, including a Rs 174 crore contract from CINDA Engineering, a Rs 90 crore project from Bird Hotel Jewar, and a Rs 75 crore order from Ritnand Balved Education Foundation.

  • Metal stocks like Tata Steel, JSW Steel, Hindalco Industries and Steel Authority of India (SAIL) are rising in trade. The broader sectoral indices, Nifty Metal and BSE Metal, are also trading in the green.

  • The Centre reportedly extends its FAME-II (Faster Adoption and Manufacturing Electric Vehicles) scheme by four months to avoid any disruption in the EV industry, providing relief to electric two- and three-wheeler manufacturers. According to reports, the scheme is now extended until July 31, 2024, from the original end date of March 31.

  • Mahindra & Mahindra falls sharply as its promoter, Prudential Management and Services, plans to sell a 0.8% stake (or 93 lakh shares) in the company for Rs 1,832 crore.

  • Zydus Lifesciences receives US FDA approval for its Ahmedabad API facility, allowing it to commercially manufacture and supply the API.

  • Macrotech Developers hits an all-time high of Rs 1,234 after raising Rs 3,281 crore via a qualified institutional placement. The company approves the allotment of 2.9 crore equity shares to eligible qualified institutional buyers.

  • Reserve Bank of India Governor Shaktikanta Das forecasts the Indian economy to grow by nearly 8% in FY24, exceeding the 7.6% growth estimated by the National Statistical Office (NSO). He adds that the gross domestic product (GDP) for the current year will likely approach 8%.

  • Larsen & Toubro is rising as its hydrocarbon business bags a Rs 1,000-2,500 crore order from Oil & Natural Gas Corp (ONGC). The order is for the engineering, procurement, construction and commissioning of new process gas compressor (PGC) modules at ONGC's offshore locations.

  • GPT Infraprojects rises sharply as its joint venture bags a Rs 135 crore order from the North Central Railways, Uttar Pradesh. The order is for earthwork, construction of bridges and subways, and other related works.

  • Suzlon Energy bags an order from Juniper Green Energy to supply 23 wind turbines with a total installed capacity of 72.5 MW.

  • Spicejet rises by more than 2% as it resolves a Rs 413 crore dispute with Echelon Ireland Madison One. This settlement will save the airline about Rs 398 crore. As part of the settlement, Spicejet will acquire two airframes, expanding its fleet and operational capacity.

  • JSW Steel's February 2024 consolidated crude steel production rises 4.8% YoY to 21.5 lakh tonnes. Capacity utilisation at its Indian operations stands at 92%.

  • Mukka Proteins’ shares debut on the bourses at a 42.9% premium to the issue price of Rs 28. The Rs 224 crore IPO has received bids for 137 times the total shares on offer.

  • Bajel Projects' Chief Executive Officer Sanjay Bhagat resigns due to personal commitments. His resignation will take effect from March 31, 2024.

  • Bharti Airtel touches a new 52-week high of Rs 1,213.6 as 4.9 crore shares (0.8% equity), amounting to Rs 5,849 crore, reportedly change hands in a block deal. Singapore telecom operator Singtel sells its stake in the company to GQG Partners.

  • Hindustan Aeronautics is rising as its contract value for supplying light combat aircraft is amended to Rs 5,077.9 crore from the initial Rs 2,700.9 crore.

  • NLC India falls as its promoter, the President of India acting through the Government of India, announces an offer for sale of up to a 7% stake in the company.

  • Prestige Estates Projects launches its new residential project, Prestige Somerville, in Bangalore. This development includes 306 apartments with a revenue potential of Rs 800 crore.

  • Jupiter Wagons rises sharply as it receives an order worth Rs 956.9 crore from the Ministry of Railways to supply 2,237 wagons.

Riding High:

Largecap and midcap gainers today include Tata Power Company Ltd. (425.25, 7.7%), Cholamandalam Investment & Finance Company Ltd. (1,083.25, 6.2%) and Solar Industries India Ltd. (7,595.10, 5.2%).

Downers:

Largecap and midcap losers today include Mahindra & Mahindra Ltd. (1,897.55, -3.7%), CG Power and Industrial Solutions Ltd. (457.65, -2.6%) and Bharat Petroleum Corporation Ltd. (624.70, -2.1%).

Volume Shockers

23 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Tata Chemicals Ltd. (1,315.25, 11.6%), IIFL Finance Ltd. (420.25, 10.0%) and Tata Teleservices (Maharashtra) Ltd. (89.95, 7.9%).

Top high volume losers on BSE were Mahindra & Mahindra Ltd. (1,897.55, -3.7%) and NLC India Ltd. (218.75, -3.4%).

G R Infraprojects Ltd. (1,253.75, 2.6%) was trading at 127.1 times of weekly average. Tata Power Company Ltd. (425.25, 7.7%) and Chambal Fertilisers & Chemicals Ltd. (372.75, 4.1%) were trading with volumes 7.7 and 6.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

29 stocks made 52-week highs, while 3 stocks were underachievers and hit their 52-week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (8,879.05, 3.2%), Bank of Baroda (281.75, -0.3%) and Bharat Electronics Ltd. (215.20, 2.3%).

Stocks making new 52-week lows included - KRBL Ltd. (298.30, -0.3%) and TCI Express Ltd. (1,057.85, -0.1%).

11 stocks climbed above their 200 day SMA including Tata Teleservices (Maharashtra) Ltd. (89.95, 7.9%) and Home First Finance Company India Ltd. (866.45, 4.4%). 15 stocks slipped below their 200 SMA including Supreme Industries Ltd. (3,894.45, -1.8%) and Ratnamani Metals & Tubes Ltd. (2,845.20, -1.6%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
06 Mar 2024
Market closes higher, J Kumar Infraprojects wins an order worth Rs 912.3 crore
By Trendlyne Analysis

Nifty 50 closed at 22,484.40 (128.1, 0.6%) , BSE Sensex closed at 74,085.99 (408.9, 0.6%) while the broader Nifty 500 closed at 20,386.50 (4.5, 0.0%). Of the 2063 stocks traded today, 312 were gainers and 1739 were losers.

Indian indices rose from the day’s low and closed in the green. The volatility index, Nifty VIX, dropped by 0.5% and closed at 14.3 points. NLC India’s arm, NLC India Green Energy, bags an order from Gujarat Urja Vikas Nigam (GUVNL) to supply 600 MW of solar power at Khavda Solar Park, Gujarat.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower, with the benchmark index closing in the green. Nifty IT and Nifty Bank closed higher than Tuesday’s closing level. According to Trendlyne’s sector dashboard, telecom services emerged as the top-performing sector of the day, with a rise of over 1%. 

Most European indices trade in the green. US indices futures trade higher, indicating a positive start. Chinese stocks reacted negatively after China set the GDP growth rate for 2024 at 5%, the same as the previous year.

  • Mahanagar Gas sees a short buildup in its March 28 future series as its open interest rises 102.8% with a put-call ratio of 0.5.

  • NLC India’s arm, NLC India Green Energy, bags an order from Gujarat Urja Vikas Nigam (GUVNL) to supply 600 MW of solar power at Khavda Solar Park, Gujarat.

  • KPI Green Energy is rising as it bags an order to execute 9.4 MW of solar power projects. The company will undertake 5 MW of the total capacity, while the remaining will be executed by its subsidiary, KPIG Energia.

  • Heavy Electrical Equipment, Cars & Utility Vehicles, Oil Equipment & Services, and Educationindustries surge by more than 10% over the past month.

  • Gopal Snacks' Rs 650 lakh IPO gets bids for 0.6X the available 1.2 crore shares on offer on the first day of bidding. The retail investor quota gets bids for 0.9X the available 59.4 lakh shares on offer.

  • J G Chemicals' Rs 251.2 crore IPO gets bids for 6.4X the available 81.7 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 8.3X the available 41.2 lakh shares on offer.

  • R K Swamy's Rs 423.6 crore IPO gets bids for 25.9X the available 82.3 lakh shares on offer on the third day of bidding. The retail investor quota gets bids for 34X the available 14.5 lakh shares on offer.

  • The Indian rupee outperforms its emerging market peers in the first two months of the year. Analysts expect India's inclusion in JP Morgan's EM Bond Index to boost inflows, leading to a modest appreciation of the rupee in the near term.

  • Realty stocks like Swan Energy, Macrotech Developers, Sobha and Brigade Enterprises fall more than 4% in trade. All constituents of the broader Nifty Realty index are also trading in the red, causing it to plunge more than 2%.

  • Indiabulls Real Estate falls sharply as Maharashtra Industrial Development Corp (MIDC) orders the company's subsidiary, Indiabulls Industrial Infrastructure, to vacate its 512.1-acre land parcel in Nashik.

  • Force Motors is falling as its February wholesales rise only slightly by 0.2% to 2,461 units. Domestic wholesales increase 5.8% YoY, while exports fall 57%.

  • Citi keeps its 'Buy' rating on UltraTech Cement, setting a target price of Rs 11,700. Despite observing a demand slowdown, the brokerage forecasts about 8-9% growth in FY25, even with elections in the first half. It also notes that, with producers aiming to increase market share, there's an indication from management about potential price softening.

  • Lake District Holdings sells a 7.4% stake (58.4 lakh shares) in Aavas Financiers for approximately Rs 800 crore in a bulk deal on Tuesday. Partners Group also offloads a 5.3% stake, while SBI Mutual Fund and Amansa Holdings pick up around 8% and 3% stakes in the company.

  • Centum Electronics is rising as it bags an order worth Rs 187 crore from the Defense Research and Development Organisation (DRDO) to set up space-based EW payloads. The order is expected to be executed in the next 16 months.

  • J Kumar Infraprojects wins an order worth Rs 912.3 crore to develop a coastal road at Ulwe, Navi Mumbai.

  • Fairfax India Holdings Corp will invest up to $200 million in liquidity support to IIFL Finance. The RBI has directed the company to stop gold loan activities, leading to liquidity concerns among investors and lenders.

  • Ajmera Realty & Infra India secures credit worth Rs 500 crore from Standard Chartered Bank and ICICI Bank to execute Ajmera Manhattan, a residential project in Wadala.

  • Media stocks like Sun TV Network, Zee Entertainment Enterprises, PVR Inox, Network18 Media & Investment and Saregama India are falling in trade. The broader Nifty Media index also falls more than 2%.

  • Gopal Snacks raises Rs 194 crore from anchor investors ahead of its IPO by allotting 48.4 lakh shares at Rs 401 each. Investors include BNP Paribas Funds, Copthall Mauritius Investment, BofA Securities, Quant Mutual Fund, and Optimix Wholesale Global Emerging Markets Share Trust.

  • Zomato falls over 2% as 19 crore shares (2.2% equity), amounting to Rs 3,112 crore, reportedly change hands in a block deal. Antfin Singapore Holdings is likely the seller in this deal.

  • JSW Energy's step-down subsidiary, JSW Renew Energy Five, signs a battery energy storage purchase agreement (BESPA) with Solar Energy Corp of India to supply 250 MW/500 MWh of battery energy storage systems. The firm is tasked with delivering the agreed power capacity within the next 18 months.

  • Mahanagar Gas falls as it reportedly cuts CNG price in Mumbai by 3.3% to Rs 73.5 per kg.

  • Samvardhana Motherson International is falling following a reported block deal involving a 4.7% stake. Promoter Sumitomo Wiring is likely the seller.

  • JM Financial plunges as the Reserve Bank of India (RBI) directs the company to immediately stop financing against shares and debentures. The order also prohibits the sanctioning and disbursing of loans against the initial public offering (IPO) of shares and against subscriptions to debentures.

Riding High:

Largecap and midcap gainers today include Pidilite Industries Ltd. (2831.55, 4.9%), ICICI Prudential Life Insurance Company Ltd. (576.85, 4.2%) and Max Healthcare Institute Ltd. (759.50, 4.1%).

Downers:

Largecap and midcap losers today include Solar Industries India Ltd. (7218.30, -7.0%), Indraprastha Gas Ltd. (430.10, -6.2%) and Aditya Birla Capital Ltd. (180.95, -5.8%).

Crowd Puller Stocks

17 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Tata Chemicals Ltd. (1178.45, 11.0%), Pidilite Industries Ltd. (2831.55, 4.9%) and Natco Pharma Ltd. (1020.20, 3.8%).

Top high volume losers on BSE were IIFL Finance Ltd. (382.20, -20%), Mahanagar Gas Ltd. (1329.60, -15.1%) and Capri Global Capital Ltd. (248.40, -14.1%).

JM Financial Ltd. (85.50, -10.4%) was trading at 34.4 times of weekly average. Samvardhana Motherson International Ltd. (120.85, -3.7%) and Prism Johnson Ltd. (170.05, -0.2%) were trading with volumes 20.0 and 18.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

20 stocks hit their 52 week highs, while 9 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Bajaj Auto Ltd. (8605.80, 3.0%), Bank of Baroda (282.55, 1.6%) and Bosch Ltd. (30110.55, 0.2%).

Stocks making new 52 weeks lows included - Atul Ltd. (6029.35, -0.6%) and Timken India Ltd. (2633.35, -0.6%).

6 stocks climbed above their 200 day SMA including Tata Chemicals Ltd. (1178.45, 11.0%) and 3M India Ltd. (30323.70, 0.7%). 31 stocks slipped below their 200 SMA including IIFL Finance Ltd. (382.20, -20%) and JM Financial Ltd. (85.50, -10.4%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
05 Mar 2024
Market closes lower, Power Mech Projects bags two orders worth Rs 658.6 crore
By Trendlyne Analysis

Nifty 50 closed at 22,356.30 (-49.3, -0.2%), BSE Sensex closed at 73,677.13 (-195.2, -0.3%) while the broader Nifty 500 closed at 20,382 (-50.1, -0.2%). Market breadth is highly negative. Of the 2,065 stocks traded today, 582 were gainers and 1,457 were losers.

Indian indices recovered from their day lows but still closed in the red. The Indian volatility index, Nifty VIX, fell 3.6% and closed at 14.4 points. India’s Services PMI declines to 60.6 in February from 61.8 in January due to a slowdown in new orders and output. This marks the 31st consecutive month the PMI has stayed above the 50 mark, indicating an expansion in the sector.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red, taking cues from the benchmark index. Nifty Bank and Nifty Energy closed higher than their Monday close. According to Trendlyne’s sector dashboard, Telecom Services emerged as the top-performing sector of the day, with a rise of 2.1%.

Major Asian indices closed lower, with the Hong Kong’s Hang Seng index closing deep in the red. European indices trade lower amid weak global cues. US index futures trade in the red, indicating a negative start to the trading session. Brent crude oil futures traded in the red after closing 0.75 lower on Monday.

  • Money flow index (MFI) indicates that stocks like Tata Investment Corp, Godfrey Phillips India, Tata Communications and Intellect Design Arena are in the overbought zone.

  • ICICI Direct retains its 'Buy' rating on Union Bank of India with a target price of Rs 180 per share. This indicates a potential upside of 15.2%. The brokerage is optimistic about the bank's net profit growth, driven by recovery from the stressed pool and treasury gains. It expects the company's net profit to grow at a CAGR of 33.7% over FY23-26.

  • IT stocks like Persistent Systems, Mphasis, Coforge and Infosys are falling in trade. The broader sectoral index, Nifty IT, is also trading in the red.

  • Power Mech Projects bags a Rs 541.6 crore order from the Madhya Pradesh Water Resources Department for the construction of the Upper Burhner Project Dam and a pressurised pipe irrigation network. The company also wins a Rs 117 crore order from Gujarat Mineral Development Corporation for the overhaul of the Akrimota Thermal Power Station.

  • India is in talks with countries like Namibia, Guyana, and Suriname to source crude oil in response to the OPEC+ production cuts. OPEC+ has announced voluntary crude supply reductions through the end of June.

  • J G Chemicals' Rs 81.7 lakh IPO gets bids for 2.5X the available 82.3 lakh shares on offer on the first day of bidding. The retail investor quota gets bids for 3.6X the available 41.2 lakh shares on offer.

  • R K Swamy's Rs 423.6 crore IPO gets bids for 6.0X the available 82.3 lakh shares on offer on the second day of bidding. The retail investor quota gets bids for 18.3X the available 14.5 lakh shares on offer.

  • Strides Pharma Science is rising as its arm Strides Pharma Global Pte, Singapore, receives US FDA approval for Gabapentin Tablets, 600 mg and 800 mg, used to treat partial seizures and neuropathic pain. The tablet has estimated annual sales of $140 million.

  • Bajaj Auto rises as MD Rajiv Bajaj announces the upcoming launch of the world's first CNG bike in Q1FY25, ahead of schedule. He notes significant emissions reductions with the CNG prototype: nearly 90% in non-methane hydrocarbons, 50% in CO2, and 75% in carbon monoxide.

  • JSW Energy's promoters acquire 164.5 crore equity shares in the company via open market operations.

  • Fireside Ventures Investment Fund trims its stake in Honasa Consumer to 5.5% from 7.6%, selling in two tranches over the past two months.

  • Shoppers Stop is rising as it partners with Ace Turtle to expand the company's khaki brand, Dockers.

  • SpiceJet rises over 2% as it settles a Rs 93 crore dispute with Cross Ocean Partners. After this settlement, SpiceJet will acquire additional assets, including an airframe and an engine. The company expects to strengthen its operational capabilities with this step.

  • PSU bank stocks like Central Bank of India, UCO Bank, Indian Overseas Bank and Union Bank of India are rising in trade. The broader sectoral index, Nifty PSU Bank, is also trading in the green.

  • Infibeam Avenues rises following RBI’s final approval for a Payment Aggregator Licence. The company can now operate as an online payment aggregator to provide digital payment services to merchants across the country.

  • NBCC (India)'s arm HSCC wins a Rs 92 crore work order from Post Graduate Institute of Medical Education And Research for the construction of an extension block for the advanced eye centre and DDTC.

  • India’s Services PMI declines to 60.6 in February from 61.8 in January due to a slowdown in new orders and output. This marks the 31st consecutive month the PMI has stayed above the 50 mark, indicating an expansion in the sector.

  • IIFL Finance plunges to its 20% lower circuit as the Reserve Bank of India (RBI) directs it to stop sanctioning or disbursing gold loans, and cease their assigning, securitising, or selling. However, the company can continue servicing its existing gold loan portfolio through the usual collection and recovery processes.

  • Exicom Tele-Systems’ shares debut on the bourses at an 86.6% premium to the issue price of Rs 142. The Rs 446.1 crore IPO has received bids for 129.5 times the total shares on offer.

  • Platinum Industries’ shares debut on the bourses at a 31.6% premium to the issue price of Rs 171. The Rs 235.3 crore IPO has received bids for 99 times the total shares on offer.

  • UBS maintains its 'Neutral' rating on Siemens and hikes the target price to Rs 5,000. The brokerage expects the company to continue receiving large project orders in the medium term. It is also optimistic about its transmission segment. The brokerage notes that the company is moving towards capacity expansion.

  • Virtuous Tradecorp, promoter of Jindal Stainless, buys a 0.8% stake in the company on Monday. It now holds 7.4% of the company.

  • Krishna Institute of Medical Sciences (KIMS) is rising as it signs agreements to lease a land parcel for 99 years and to purchase a building in Thane for a new hospital. The hospital is expected to have 300 beds, with an investment of Rs 500 crore for the project.

  • Tata Motors rises sharply as its board of directors approves the demerger of its passenger and commercial vehicle segments into two separate entities.

  • Macrotech Developers is rising as its board of directors approves the issue of equity shares worth Rs 3,300 crore through a qualified institutional placement (QIP). The board has set a floor price of Rs 1,129.5 per share.

  • Nifty 50 was trading at 22,357.20 (-48.4, -0.2%), BSE Sensex was trading at 73,755.53 (-116.8, -0.2%) while the broader Nifty 500 was trading at 20,412 (-20.1, -0.1%)

  • Market breadth is in the green. Of the 1,813 stocks traded today, 924 were in the positive territory and 835 were negative.

Riding High:

Largecap and midcap gainers today include Indian Overseas Bank (69.25, 9.7%), UCO Bank (60.30, 7.5%) and Solar Industries India Ltd. (7,760.15, 6.5%).

Downers:

Largecap and midcap losers today include Bajaj Finserv Ltd. (1,550.50, -4.3%), Bajaj Finance Ltd. (6,324.25, -4.2%) and PB Fintech Ltd. (1,061.70, -4.0%).

Movers and Shakers

33 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Capri Global Capital Ltd. (289.25, 20%), Indian Overseas Bank (69.25, 9.7%) and Balaji Amines Ltd. (2,393.90, 9.0%).

Top high volume losers on BSE were Aavas Financiers Ltd. (1,358.10, -5.1%), Bajaj Finserv Ltd. (1,550.50, -4.3%) and KPIT Technologies Ltd. (1,493.35, -3.4%).

CSB Bank Ltd. (369.20, 5.8%) was trading at 26.0 times of weekly average. Muthoot Finance Ltd. (1,362.40, 1.8%) and Tata Chemicals Ltd. (1,061.30, 5.8%) were trading with volumes 12.0 and 12.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

37 stocks overperformed with 52 week highs, while 4 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Ambuja Cements Ltd. (613.10, -0.7%), Astral Ltd. (2,106.75, 0.5%) and Bharat Electronics Ltd. (210.75, 0.6%).

Stocks making new 52 weeks lows included - Timken India Ltd. (2,649.25, -1.9%) and KRBL Ltd. (302.60, -1.6%).

9 stocks climbed above their 200 day SMA including Balaji Amines Ltd. (2,393.90, 9.0%) and Tata Chemicals Ltd. (1,061.30, 5.8%). 20 stocks slipped below their 200 SMA including IIFL Finance Ltd. (477.75, -20.0%) and Piramal Enterprises Ltd. (924.60, -4.4%).